Round to the upside continues after failed break of the lower floor
The GBPUSD has broken back above the 100 and 200 hour MAs between 1.3669 to 1.3682. Staying above those levels is now close risk for traders although volatility is increased. The 50% retracement of the week's trading range is a more conservative stop. If the price can stay above the moving averages great for the buyers. If the price can stay below 50% midpoint that's still okay. A move below might be indicative of the potential for more downside probing.
The pair last traded above the moving average levels on Tuesday briefly before reversing back to the downside after about an hour or so. The high on Tuesday came in at 1.3709. That is a target on the topside now
Today, the floor/double bottom at 1.3610 was broken and that led to a move to the downside. That move was quickly reversed on the Bank of England decision. Initial 5 minute bar after the decision saw the price move up toward 1.3634, back down to 1.3625 and run higher from there (see chart below).
Now that the lower end of the up and down trading range has been broken and failed, will traders now take the price to retest the upper end? Initial target is to get above the 1.3709 level. From there traders will look toward the 1.3745 to1.37509 area followed by the double top at 1.3757.
